Increased Butterfat Demand Creates SNF Surplus For Dairy FarmersJune 23, 2015 8:47am
The Ontario dairy industry’s efforts to meet demand for one product has created a surplus of another.
Processors have increased demand for butterfat to meet increased demand for butter at the retail level.
A byproduct of butterfat production is SNF – solids, non-fat.
Normally, that’s dried and sold into the animal feed market.
But Dairy Farmers of Ontario Chair Ralph Dietrich says there’s not enough capacity in the province to handle the increased volume – so some of it has to be dumped.
He emphasizes it’s not fluid milk that’s being dumped – it’s a byproduct of the production of butterfat.
Dietrich says the answer is to increase processing capacity to handle more of the SNF’s.
But he admits that would be a major investment for the processing industry.
Dietrich says the dairy industry has to work with processors to give those companies the confidence to make that kind of an investment in Canada.
The DFO Chair estimates about 800 thousand litres of SNF has been dumped so far as producers work to meet the increased processor demand for butterfat.
Ralph Dietrich says a 4 per cent increase in demand has processors looking for more butterfat.
Dietrich says they’ve had to divert about 800 thousand litres of SNF – solids, not fat – in order to meet a 4 per cent increase in demand from processors for butterfat.
Dietrich says processors need to be convinced of the need to increase their capacity to convert more of that byproduct into animal feed.